Sigma Lithium Corporation Common Shares - SGML STOCK NEWS

Sigma Lithium (NASDAQ: SGML) has signed a US$ 22.4 million deferred letter of credit with Banco do Brasil, marking a significant milestone in its growth as a lithium producer. This transaction enables Sigma to offer 90-day 'export vendor financing' to clients at low interest rates, enhancing its commercial flexibility and market access. The deal, based on 22,000t of July 5th production at 8.75% of LME Lithium Hydroxide price, allows Sigma to phase out existing trade finance lines and transition from receiving advance payments to providing vendor financing.

This move is expected to improve Sigma's competitive position, widen its client base, and potentially institutionalize a premium for its Quintuple Zero Green Lithium concentrate. The company's ability to access this type of export financing demonstrates its maturity as a producer within its first year of operations, positioning it among Brazil's largest industrial exporters.

The global lithium industry is experiencing significant growth, with reserves and resources surging 52.2% to 303.5 million metric tons in Q1 2024 compared to three years ago. Lithium South Development (TSXV:LIS) (OTC:LISMF) filed a new Preliminary Economic Assessment (PEA) for its Hombre Muerto North Lithium Project, revealing an after-tax NPV of US$938 million and an IRR of 31.6%. The company also updated its NI 43-101 technical report, showing a 175% increase in lithium resources to over 1.58 million tonnes of LCE.

Other industry developments include Sigma Lithium 's 40% upgrade in proven and probable reserves, Lithium Ionic Corp.'s $11 million financing for its Brazilian projects, Albemarle 's agreement to increase production quota in Chile, and Standard Lithium 's partnership with Equinor ASA for a potential $160 million investment.

Sigma Lithium appoints Eugenio de Zagottis as an independent director with 99% approval at its latest annual general and special meeting (AGSM). Zagottis is noted for transforming Raia Drogasil into the largest drug retailer in Latin America. The AGSM also elected directors for the coming year, including Alex Rodrigues, Ana Cabral, Bechara Azar, and Marcelo Paiva, diversifying the board's skillset to support business growth. The board now has a 40% representation from underrepresented groups and remains co-chaired by a woman. Shareholders approved Grant Thornton as the company's auditor and authorized a corporate charter transition to Ontario.

Sigma Lithium, a leading global lithium producer, has successfully completed the sale of its 10th shipment consisting of 22,000 tonnes of Quintuple Zero Green Lithium. The sale was made at a premium floating price of 8.75% of LME Lithium Hydroxide, on a CIF Shanghai basis. Scheduled for early July, this shipment marks 11 months of consistent operations, underscoring the company's reliability and operational discipline.

On June 30, 2024, Sigma finalized an FOB export sale at Victoria Port's warehouse for 17,200 tonnes, with the additional 4,800 tonnes balance to be shipped in July. This highlights the robust demand and superior quality of their lithium concentrate, which offers significant cost savings to customers due to its high purity and low mica contaminants.

CEO Ana Cabral emphasized the company's reputation for sustainability and reliability. Commercial Director Catarina Noci added that Sigma's strategy includes a premiumization approach and formula floating based on LME prices to provide clients with price predictability and to share pricing risks.

Sigma Lithium co-chaired a conclave at Saudi Arabia's Future Investments Initiatives Priority Summit in Brazil, emphasizing the importance of materials transition. They discussed energy transition, technology, and social inclusion. Vice President Ligia Pinto highlighted Sigma's sustainability efforts in Brazil’s Jequitinhonha Valley, leading to economic growth and job creation. Sigma also hosted a delegation from the Wharton School at its plant, showcasing Brazil's significant role in the global lithium industry and its Quintuple Zero Green Lithium product.

The summit, themed 'Invest in Dignity,' aimed at building a global order prioritizing dignity through energy transition and social inclusion. Sigma Lithium's operation in Brazil has transformed one of the country's poorest regions through substantial investments and social programs. The company’s Quintuple Zero Green Lithium aligns with its environmental and social sustainability principles. Pinto urged global cooperation to accelerate a just energy transition.

Sigma Lithium has announced its upcoming annual and special meeting of shareholders (AGSM) on July 9, 2024. The meeting, initially scheduled for June 28, 2024, has been rescheduled to allow shareholders adequate time to review the Meeting Circular and other related materials before voting. The AGSM will be held virtually via a live audio webcast, with voting details included in the Meeting Materials dated June 14, 2024. Only shareholders of record as of May 24, 2024, will be eligible to vote. Proxy voting instructions must be submitted to Computershare Investor Services by July 5, 2024. The Meeting Materials are available on SEDAR and the Sigma Lithium website.

Sigma Lithium will participate in a trade mission to China from June 5-7, celebrating 50 years of Brazil-China diplomatic relations. CEO Ana Cabral will engage in panels on energy transition and sustainable development. Sigma will join prominent Brazilian companies like Vale, Embraer, and Bradesco. In Brazil, Sigma will also sponsor and participate in energy forums organized by Columbia University and the Aspen Institute, discussing Brazil's role in the global energy transition.

Sigma aims to highlight its production of Quintuple Zero Green Lithium, positioning Brazil as a leader in sustainable lithium supply for electric vehicles. The mission is part of Sigma's broader initiative to promote the Brazilian lithium industry, which has contributed to significant social and economic development in regions like Vale do Jequitinhonha.

Sigma Lithium has announced the loading of its ninth shipment, totaling 22,000 tonnes of Quintuple Zero Green Lithium concentrate, at the Port of Vitoria. This shipment was sold to LX International, previously known as LG International, at a premium price calculated as 9% of the LME lithium hydroxide benchmark. This formula, which is final and non-provisional, is based on a fixed-floating calculation. The auction process used for price discovery is designed to ensure transparency and equitable distribution of risk and reward across the supply chain.

Sigma Lithium's management sees this deal as a significant step in commercial diversification and relationship building with South Korean industrial groups, particularly LG Group. The shipment's price surpasses the previous shipment's rate of 8.75% and reflects the company's strategy of maximizing value creation through high-purity lithium concentrate. The price formula will depend on LME lithium hydroxide prices one month after the shipment lands.

In Q1 2024, Sigma Lithium (SGML) reported a 25% price increase for its May shipment to $1,290/t. Revenues from Q1 sales of Quintuple Zero High Purity Lithium Concentrate reached $49.1 million, with sales volumes totaling 52,857/t and production volumes at 54,168/t. The company achieved a 16% reduction in cash costs from Q4 2023, with FOB cash costs at $462/t and plant gate costs averaging $397/t. Pro forma EBITDA margin stood at 35.3%, with a reported adjusted EBITDA of $5.9 million. Sigma's Board has approved the construction of a second Greentech Industrial Plant to boost production capacity to 520,000/t annually. The operational life at Grota do Cirilo has been extended to 25 years, and proven and probable reserves increased by 40% to 77 million tonnes.